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Freddie Mac Won't Need Treasury Aid After Third-Quarter Loss

  • Bottom line hit by accounting for hedges on interest-rate risk
  • FHFA's Watt points to increasing likelihood of future draws
Updated on

Freddie Mac moved closer to needing another dose of U.S. Treasury Department aid after reporting its first quarterly loss since 2011 stemming mostly from accounting for hedges against interest-rate risk.

The company, which has operated under federal conservatorship since it was seized along with rival Fannie Mae in 2008, had positive net worth of $1.3 billion after a half-billion dollar loss for the third quarter, according to a statement released Tuesday. That means it won’t need to add to the $71.3 billion in aid it has received since the financial crisis or the $96.5 billion it has sent to Treasury after regaining profitability in 2012.